Ever since I have started to write on this blog I have talked about how to save money, about how not to lose money, about how to better manage your money with the help of a personal budget or even how to get rid of debts.
I have never talked about the best financial actions you have to follow regardless of day and situation.
Today I have made an analysis of multiple articles written on the blog and I have synthesized the best 7 financial actions you can implement starting in this moment.
The actions are simple, as logical as possible and very useful in our financial life.
Before beginning to implement them, I would like to tell you that when you use them consider also other things which are more important in your life than money, namely: health, time and family. If these are safe, then you should think about these financial actions.
1. Always, but always – Spend less than you Earn. Expenses < Income.
Regardless of occasion and what you are doing, it is necessary to spend less than you earn. This rule must never be forgotten.
Once this rule is implemented, you will have a healthy financial life, without having problems about tomorrow.
If you consider that your expenses are higher than your income, try to reorganize your financial life. I recommend a model of personal budget which helps you plan each penny you earn and each penny you spend.
2. Increase your income.
A second important action is to increase your income, regardless of how much is it and regardless of the possibility. The first thing you have to do is analyse your job. Are you happy with it? Does it satisfy you? Do you deserve a raise?
If the job you have cannot increase your income, you have to think about how you can make some extra money. Think about your passions and try to make some money out of them.
Another method is the online. If you are passionate about a subject, you can start a blog. After a while, it can bring you a monthly income. Here are 3 critical lessons which help you make money out of blogs.
3. Reduce costs.
I know that maybe you think you are already spending too little or that the things you buy are barely enough, but that is not true. There are definitely places where you can reduce costs (clothes, food, maintenance, telephone etc).
Analyse all your expenses and see where you can make some cuts. Learn to manage your money as best as possible. Here are 10 ways to manage your personal money.
4. Get rid of debts.
An important thing before purchasing any kind of objects. The hardest thing is when you have debts and others are counting on your money. Respect your duties as quick as possible.
If we talk about a debt on many years, try putting money aside for “rainy days”. These days will definitely come and this money will help you get out of trouble.
Here are 41 ways that will help you get rid of debts. The sooner the better from your financial health point of view.
5. Invest your savings.
One of the problems I have seen in people with much savings is that they do nothing further with them. If you made some cuts, you should get something with the money you saved. Invest in something that brings you a benefit on long term, preferably in a passive income source.
Draw up an investment plan and try to stick to it. Do not wait with the money in hand and do not keep them under the mattress or at bank. Money has to flow always, but only if you benefit from them.
Warning! Invest your money only when you think you have enough money to cover the rainy days.
6. Think about old age.
It is very important to think about how old age is going to be. What are you doing now, so that you do not have financial problems in your old age? Are you creating some passive income that helps you to have a financially balanced old age?
It is preferably not to think about this each day, but it is important that all our financial activities consider this aspect as well. Think about your financial life for your older age ever since you are young and you will definitely have nothing to regret.
7. Offer – Give.
I know it is not an action which brings you an immediate financial benefit, but you never know. When you offer, a sentimental side is opening inside of us and we feel good.
You never know when a door opens for you as well and you get something in return.
These are the most important 7 financial actions I found. Do you think the list should have been longer? What action do you think should have been included in this list?
I am waiting your opinion about the article in a comment below.